Cadillac Ventures (CVE:CDC) updated investors late Monday with regards to the expected closing of its $1.2 million private placement financing with Sino-Canada Natural Resources Fund I announced last Month.
The company said Sino-Canada has entered into an "irrevocable" subscription agreement to acquire 20 million units of the company at a price of 6 cents per unit. Each unit consists of one common share of Cadillac, and one share purchase warrant, exerciseable for 30 months following closing for an additional share at a price of 10 cents.
Sino-Canada has advanced the full $1.2 million subscription amount, Cadillac said in the release Monday, and such funds are being held in escrow by McMillan LLP pending formal closing of the offering, which has been delayed pending clearance by the TSX Venture Exchange.
The clearance is with regards to personal information forms of Sino-Canada, which were submitted to the exchange at the beginning of April. Cadillac says it has been advised that the okay of the forms will likely take "a few more weeks".
The go-ahead is required because on closing, Sino-Canada will become an insider of Cadillac through its 12.1 per cent stake in the company, or around 21.7 per cent assuming full exercise of warrants.
Cadillac says it plans to use the new funds from the private placement for expenses on its Canadian exploration properties and for general working capital purposes.
Late last month, the junior explorer said it expanded mineralization at its Burnt Hill mine project in central New Brunswick, after revealing results from its recent drilling program. The drilling, the company said, occurred outside areas of known mineralization, with each of the five holes intersecting mineralization and expanding the area of the mine site.
Several notable silver values were also found, whereas prior drill programs at the project concentrated just on tungsten, tin and molybdenum. Cadillac said silver has not been tested since the company's first drill campaign at Burnt Hill in 2007.
Last year, the company decided to refocus on the Burnt Hill project, in which it holds a 51 per cent interest. The historic tungsten/tin mine was taken to test production by Cadillac's CEO Norman Brewster for Canadian International Paper during the early 1980s. Cadillac is now aiming to restart development at the project.
Cadillac also recently said it started an internal review of its Kirkland Lake Gold property after some encouraging data. The asset, which Cadillac acquired as part of its purchase of Richview Resources in January 2010, is located west of the town of Kirkland Lake, Ontario, within four kilometres of the producing Macassa mine.
It also stands to benefit from its nickel and copper Thierry project in northwestern Ontario, which consists of the past producing Thierry Mine and hosts two NI 43-101 compliant resources at the Thierry Mine and the K1-1 deposit.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.